FX.co ★ UK January RPI Eases to 3.8% Year-on-Year, Extending Disinflation Trend

The United Kingdom’s Retail Price Index (RPI) inflation slowed to 3.8% year-on-year in January 2026, down from 4.2% recorded in December 2025. The latest data, updated on 18 February 2026, signal a continued easing in price pressures at the start of the year.

Both figures are based on year-on-year comparisons, with the January reading measured against January a year earlier and the December figure compared with December a year before. The step down from 4.2% to 3.8% underscores a further moderation in retail price growth, suggesting that the broader disinflationary trend observed in late 2025 persisted into the new year.

While RPI is no longer the UK’s primary inflation benchmark, it remains closely watched by markets and in certain long-term contracts. The latest print may be interpreted by investors and policymakers as another indication that inflationary pressures are gradually cooling across the UK economy.